A simple interest calculator computes the interest earned or paid on a principal amount over a certain period at a fixed interest rate without compounding. The basic formula is:
Simple Interest=P×r×t\text{Simple Interest}=P\times r\times tSimple Interest=P×r×t
where PPP is the principal amount, rrr is the annual interest rate (in decimal form), and ttt is the time period in years. The total amount including principal and interest can be found by:
A=P(1+rt)A=P(1+rt)A=P(1+rt)
This calculator helps determine interest or total amount for loans, investments, or savings with simple interest.
How to Use a Simple Interest Calculator
- Enter the principal amount PPP.
- Input the annual interest rate rrr as a percentage (the calculator converts it to decimal).
- Specify the time period ttt (in years or converted from months or days).
- Calculate to find the interest III or total amount AAA.
Example
For a $10,000 loan at 5% per year for 3 years:
I=10000×0.05×3=1500I=10000\times 0.05\times 3=1500I=10000×0.05×3=1500
Total repayment:
A=10000+1500=11500A=10000+1500=11500A=10000+1500=11500
This can also adapt for periods less than a year by converting months or days into years. Simple interest calculators are available online and enable easy computation without manual calculations.
